MNI POLICY: BOJ Leaves JGB Buying Frequency Unchanged in Dec

--BOJ Lows Upper End of Longer-End JGB Buying

     TOKYO (MNI) - The Bank of Japan said Friday it would leave the frequency of

its bond buying operations in December unchanged from November levels.

     But the BOJ lowered the upper end of its purchases of JGBs with a remaining

life of 10 to 25 years to Y150 billion from Y200 billion. It also said that the

bank will conduct purchases in a flexible manner, taking account of market

conditions, aiming to achieve the target level of a long-term interest rate

specified by the guideline for market operations.

     The BOJ's schedule sees it refrain from conducting JGB buying operations on

days when the Ministry of Finance holds auctions for JGBs or the BOJ board holds

policy meetings.

     --CALENDAR

     The planned JGB purchase operations in December:

     The zones (amounts to be purchased in ranges)

     --1 to 3 years (Y300-Y550 bln in Dec. vs. Y300-Y550 bln in Nov.)

     --3 to 5 years (Y200-Y450 bln in Dec. vs. Y200-Y450 bln in Nov.)

     --5 to 10 years (Y200-Y500 bln in Dec. vs. Y200-Y500 bln in Nov.)

     --10 to 25 years (Y50-Y150 bln in Dec. vs. Y50-Y200 bln in Nov.)

     --More than 25 years (zero-Y50 bln in Dec. vs. zero-Y50 bln in Nov.)

     The frequencies of operations in each zone in Dec. plans vs Nov. actual.

     --1 to 3 years: 4 times (4 times)

     --3 to 5 years: 4 times (4 times)

     --5 to 10 years: 4 times (4 times)

     --10 to 25 years: 3 times (3 times)

     --More than 25 years: 3 times (3 times)

     The dates of operations

     Dec. 2: 1 to 3 years, 3 to 5 years, 10 to 25 years, more than 25 years.

     Dec. 6: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     Dec. 9: 10 to 25 years, more than 25 years.

     Dec. 13: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     Dec. 18: 1 to 3 years, 3 to 5 years, 5 to 10 years.

     Dec. 25: 5 to 10 years, 10 to 25 years, more than 25 years.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MMJBJ$,M$A$$$,M$J$$$,M$$FI$,MN$FI$]